In a dramatic turn of events late Tuesday, a federal judge temporarily blocked former President Trump’s controversial plan to freeze federal aid, just minutes before it was set to take effect. The decision came after a coalition of nonprofit and public health organizations filed an emergency lawsuit against the move.
U.S. District Judge Loren AliKhan, an appointee of former President Biden, issued the temporary order after an urgent video hearing held just an hour before the freeze was scheduled to begin. Her “brief administrative stay” preserves federal disbursements at least through Monday, buying time for a fuller review of the legal and practical implications of the freeze.
Trump’s Plan and Its Fallout
Trump’s freeze was announced in a memo released late Monday by Matthew Vaeth, acting director of the Office of Management and Budget (OMB). The directive called for a temporary halt to federal financial assistance while the administration conducted a review to ensure spending aligns with Trump’s policy agenda.
The administration defended the plan as limited in scope, emphasizing that it wouldn’t affect Social Security payments or other direct aid to individuals. In court filings, the Justice Department argued that the nonprofits’ claims didn’t warrant immediate action, noting they hadn’t identified specific grants they would lose during the freeze.
“Defendants respectfully submit that these proceedings should unfold on a reasonable timeline,” the Justice Department wrote, urging the court to deny the emergency injunction.
Nonprofits and Advocates Push Back
The lawsuit was filed by the National Council of Nonprofits, LGBTQ advocacy group SAGE, the American Public Health Association, and the Main Street Alliance, a small-business advocacy group. Represented by Democracy Forward, a progressive legal organization, the plaintiffs argued that the freeze lacked legal authority and threatened to destabilize countless organizations and communities.
“This memo—made public only through journalists’ reporting, with barely twenty-four hours’ notice, devoid of any legal basis or the barest rationale—will have a devastating impact,” the plaintiffs’ motion stated.
The groups stressed that the freeze would disrupt the flow of obligated grant money needed for ongoing projects, jeopardizing everything from employee salaries to community services.
Broader Legal Challenges
The nonprofits’ lawsuit may be just the beginning of legal challenges to Trump’s plan. Democratic attorneys general from several states, led by New York, announced plans to sue the administration over the freeze.
As the legal battles unfold, the temporary stay ensures that federal aid will continue to reach its intended recipients, at least for now. Monday’s follow-up hearing will determine whether the freeze will ultimately proceed or face a more permanent block.
